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Sole Proprietorship (Stephen Villavicencio) A sole proprietorship is "a unincorporated business owned by one individual, making it the simplest form of business to start and operate." (The Balance, Murray, 2018) The key feature of sole proprietorship is that unlike incorporated businesses or partnerships, there is no legal separation between the business and the owner in this type of ownership. The business is considered to be an extension of the owner and as such the owner is personally responsible for any debts or liabilities incurred by the business. Sole proprietorship is a popular business form due to its simplicity, ease of setup, and nominal cost. A sole proprietorship can operate under the name of its owner or the business can operate under a fictitious name, such as: Joe's Sloppy Joe. However, the fictitious name does not create a separate legal entity from the owner of the business. The idea of the owner and the business being tied together has many advantages because it will be easy for the proprietor to invest their own money and time to ensure the growth of the business. Furthermore, when managing their own company, they would not have to worry about failed operations since they know exactly every aspect of the business. Additionally, sole proprietors will be able to gain most profits of the business which is very efficient since they will be able to get the return of their investment, at a faster rate. Though this factor has advantages it also has disadvantages, since a sole proprietor and the business are directly linked to each other. This direct connection may cause troubles in the case of bankruptcy, seeing as the owner will lose financial credibility, which will then lead to not being eligible for bank credits. Additionally, the proprietor might have trouble coping with working alone since they are only limited to their knowledge, which will disadvantage them by limiting their productivity, based on their specific set of skills. Furthermore, because of limited skill sets, owners might find it hard to raise their capitals, which will be problematic because limited resources might mean limited income. Overall, sole proprietorship is the simplest form of business ownership, since the proprietor may start their business at their own pace without being pressured to gain back all their investments. The proprietor may need accounts to start their business but other than labour, the proprietor pretty much can start their business. Here are some accounts needed to start a solo proprietorship business: * Capital * Loans * Financial Capital Partnership- Gurmon Singh A partnership ownership is a specific kind of legal relationship formed by the agreement between two or more individuals to carry on a business as co-owners. A partnership is a business with multiple owners. Each of these owners have invested in the business. In a partnership business there can be more than two owners in the business. The amount of owners could be anywhere from 2 to 500. Some advantages of a partnership ownership business are: * Fairly easy and inexpensive to form a partnership * Start-up costs are shared equally with you and your partner(s) * Equal share in the management, profits and assets * Tax advantage — if income from the partnership is low or loses money (you and your partner(s) include your shares of the partnership in your individual tax returns) Some disadvantages of a partnership business are: * the liability of the partners for the debts of the business is unlimited * can be difficult to find a suitable partner * there is a risk of disagreements and friction among partners and management A partnership can be formed very easily and even a verbal agreement can be enough to form a partnership even though most partnerships are governed by a written agreement. This agreement sets out the rules for partners entering or leaving the partnership, how decisions are made, how disputes are resolved, how to handle a buyout and the division of partnership income. Some examples of a partnership business could be a law firm or medical practice. The accounts used to form a partnership are: # Cash # Bank # Capital Corporation - Jason Nguyen A corporation is a firm that has acquired the legal requirements to be recognized having a legal existence (or as an entity separate and distinct from its owners). Corporations are owned by shareholders (also known as stockholders depending on the type of corporation) who have a share in the profits and losses through the firm. Profits of the corporation are distributed to the shareholders by way of "dividends". Pretty much when a person owns more shares, the more dividends one will receive. Shares have three characteristics: * Legal existence, a firm a person can buy, sell, own, enter into a contract and sue other people and firms and also be sued themselves. This means it can be rewarded or punished. * Limited liability is when the firm and its owners have limited liability to its creditors and resources to the firm. * Can last longer than the owners. It can live beyond the life spans and capacity of the owners because an ownership can be transferred to sales and other gifts or shares. Corporations of course like other businesses, can have their advantages and disadvantages. The advantages of a corporation is that shareholders have limited liability, lower taxation rate. Shareholders and the company are allowed to sue with the corporation as the name, it is more prestigious and it allows the longevity of the business. The disadvantages of a corporation is that it costs much more money to start-up costs, much higher upkeep cost because it requires and accountant and lawyer and losses of a company cannot be solved by one's personal income that easily. Most corporations follow a similar structure to the one mention below: # At the top it is the executives. (President, Treasurer, Secretary) These people control the day to day operations of the business. # Underneath the executives are the directors. They control the distribution of profits between the business and the shareholders # Shareholders. They provide capital, elect a new director and receive dividends Cooperative - Gautam Kannan A cooperative ownership is an ownership where the customers of a certain business come together to pull in equity and become shareholders Sources Used http://www.businessdictionary.com/definition/corporation.html https://drive.google.com/file/d/1GnkQP13LPSK7GviUY8wx6ysJLRJle7kT/view https://www.nolo.com/legal-encyclopedia/partnership-basics-30072.html https://www.nolo.com/legal-encyclopedia/partnership-basics-30072.html